2014 Homestead Benefit
Property Taxes Paid on Principal Residence

The Division of Taxation will calculate your 2014 benefit using the 2006 property taxes for the home that was your principal residence on October 1, 2014, as required by the State Budget. If no property taxes were assessed for 2006, the Division of Taxation will determine the amount of property taxes that would have been due by using the current assessed value and the 2006 property tax rate.

In addition, your benefit cannot be more than the homestead rebate amount paid for 2006 unless there was a change in your filing characteristics (e.g., reduction in income, change in age/disability status or filing status, or increase in percentage of ownership).

Multiple Owners. If you own your home with someone who is not your spouse/civil union partner, the benefit is available only for the share (percentage) of the property you owned. Only your proportionate share of property taxes is used to calculate your benefit, even if the other owner does not live in the home.

Example: You and your sister own the home you live in. She does not live with you, and you pay all the property taxes. Since you own only one-half (50%) of the property, the Division calculates your benefit using 50% of the property taxes.

Multiple Units. If your home is a unit in a multiunit property that you own, the benefit is available only for the unit you used as your principal residence. Only the proportionate share of the property taxes for the unit you occupy is used to calculate your benefit. You do not qualify if your property has more than four units or if it has more than one commercial unit.

Example: You are the sole owner of a four-unit property. The units are equal in size, and one of the units is your principal residence. Since you occupy only one-fourth (25%) of the property, the Division calculates your benefit using 25% of the property taxes.

Note: If your principal residence is a condominium unit or a unit in a co-op or continuing care retirement community, you are not considered to be living in a multiunit property.

“Unit of residential property” means a single, separate dwelling unit that must include complete, independent living facilities for one or more persons. This unit must contain permanent provisions for living, sleeping, eating, cooking, and sanitation along with separate kitchen and bathroom facilities.